Market Scenario 10/07/12

The markets lost significantly today with all sectoral indices closing in the red. Metal, power, auto and realty were the biggest losers in today's session and capital goods and consumer durables, too, lost significantly.

The market breadth was negative with advances at 420 against declines of 1031 on the NSE. The top Nifty gainers were TCS, DLF, Dr Reddys and Hindalco while losers included Reliance Infra, Jindal Steel, JP Associates and Ranbaxy.

The markets are moving a narrow band and displaying lack of direction. The lack luster trading may come to an end after the completion of the Presidential elections. Till such time keep your fingers crossed.

Technical Analysis: The Sensex closed at 17392, down 129 points from its previous close, and the Nifty shut shop at 5275, down 42 points. On the higher side 5300 and 5350 are the strong resistance levels while on the lower side 5250 and 5200 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow range. The indecisiveness may persist till some positive news emerges on the policy front from the Govt. The trend is likely to continue till Presidential elections are completed. Trade lightly and trade right should be the watch word.